Chinese smartphone maker Oppo has announced that it is closing down its chip design business, known as Zeku. The decision comes as a result of the global smartphone market decline, which has made it difficult for smaller players to compete with the likes of Samsung and Apple.
Oppo Shuts Down Its Chip Design Business
This move is a significant blow for Oppo, which has been trying to establish itself as a major player in the smartphone industry. However, it also reflects a wider trend in the market, as more and more companies struggle to keep up with the rapid pace of technological change.
Rise And Fall Of Oppo’s Zeku Chip Business
Oppo’s Zeku chip design business was founded in 2018 with the aim of developing custom chips for Oppo’s own devices. The company invested heavily in the project, hiring top talent from companies such as Qualcomm and MediaTek.
At first, the Zeku chips were seen as a potential game-changer for Oppo, offering the company greater control over its devices and potentially reducing its reliance on third-party chip makers. However, the reality has been somewhat different.
Despite significant investment, Oppo has struggled to produce chips that can compete with those from established players such as Qualcomm and Samsung. This has made it difficult for Oppo to gain a foothold in the market and has ultimately led to the decision to close down the Zeku business.
The Challenges Facing The Smartphone Industry
Oppo’s decision to close down its chip business is just the latest example of the challenges facing the smartphone industry. The global market for smartphones has been in decline for several years now, as consumers hold onto their devices for longer and the pace of innovation slows.
This has made it difficult for smaller players to compete, as they lack the resources of larger companies such as Samsung and Apple. In addition, the industry is becoming increasingly complex, with new technologies such as 5G and foldable screens requiring significant investment and expertise.
What Does The Future Hold For Oppo?
Despite the closure of the Zeku business, Oppo remains committed to the smartphone market. The company has said that it will continue to invest in research and development, with a particular focus on artificial intelligence and 5G technologies.
However, the closure of the Zeku business does raise questions about the company’s long-term strategy. Oppo has traditionally relied on third-party chip makers such as Qualcomm and MediaTek to supply the chips for its devices, and it remains to be seen whether the company can continue to compete in the market without its own custom chips.
The Wider Implications For The Smartphone Industry
The closure of Oppo’s Zeku chip business is just one example of the wider challenges facing the smartphone industry. As the market becomes increasingly complex, it is likely that we will see more companies struggling to keep up.
This could lead to a consolidation in the market, as smaller businesses are acquired or forced out of business. However, it could also create opportunities for new businesses to emerge, particularly in areas such as artificial intelligence and software.